The pound strengthened to a nine- month high against the euro as concern the region’s debt crisis will worsen boosted demand for the relative safety of the U.K. currency.
Sterling reversed a gain versus the dollar and gilts pared a decline. Fitch Ratings yesterday joined Moody’s Investors Service and Standard & Poor’s in warning it may cut the credit ratings of euro-area nations.
The pound climbed 0.5 percent to 84.19 pence per euro at 4:06 p.m. London time, the strongest since Feb. 22. It fell 0.4 percent to $1.5515 after climbing 0.3 percent.
Ten-year gilt yields climbed four basis points to 2.14 percent, while two-year yields added two basis points to 0.38 percent.
The FTSE 100 index of shares jumped 1.1 percent and the Stoxx 600 rose 0.5 percent.
To contact the editor responsible for this story: Daniel Tilles at email@example.com